/cryptophilosphy/ Altcoins and their value edition

Okay guys so in order for us to grow more knowledgeable I think we should start having serious discussions about the value of what we're dumping tens of thousands of dollars into. I'll start by posing a question that I've seen asked here many times.

So as far as altcoins go, lets use Siacoin as an example. How does a coin like this have real value as a currency? BTC is a store of wealth, and so is LTC --either can be used to buy shit. That's easy to wrap our heads around, right?

But something like Siacoin, how does the overall "decentralized" cloud network benefit from the creation of coins, to the point where they're valuable commodities?

Why is 1 Sia coin worth anything if it can't be used to buy something. Does it serve 1 part of this massive cloud network?

Is it something more of a proof/"valuable byproduct" that was "mined" to help build the Siacoin storage infrastructure.

Seriously, are we just buying nothing here? Why would Sia even create these so called coins if they don't serve any purpose to their company? If there is a purpose, what is it?

Thanks and feel free to post any questions you have as well for discussion.

I think we should start having serious discussions about the value of what we're dumping tens of thousands of dollars into

nah.

20 months ago

TechHater

Look, It's all speculation at this point but so is everything else including stocks and futures contracts but the key point to remember is that speculation is not merely a passive but an active act of evaluation that is to say, if you invest in Sia, you don't invest in the actualy fundamental value but what it is capable of achiving. By the act of evaluation, the market promotes or discourages the concept and we are far from reaching the phase where companies create actual usable products that Normie can get on with.

20 months ago

CodeBuns

Rekt

20 months ago

Illusionz

The miners use their collective computing power to secure the integrity of the network, and since that computing power isn't free (electricity costs, hardware), they must be incentivized to do it (via a coin).

20 months ago

takes2long

But seriously it time we start talking about this stuff so we can all benefit

Thanks for the other replies so far

20 months ago

Evilember

stocksspeculation

I don't think so, Tim

20 months ago

StonedTime

1. There is a network (the blockchain) that must be maintained by algorithmic computations in order to exist. 2. The CPU power used to run these computations has a real-world value (e.g. electricity, components, maintenance etc.) Without them the blockchain could not run.3. To reward ppl for maintaining the blockchain, rewards are doled out in the form of cryptocurrency.

~ as long as the blockchain in question is being used, a demand for its coin will exist

20 months ago

CouchChiller

So the company basically outsources the work to the miners with their custom currency, and then the miners trade it to others and say "here this is worth something"

Then everyone trades and trades all of these various altcoin trying to find the one that is undervalued/sure to win out

Does that sound accurate?

20 months ago

CodeBuns

Will siacoin be used to buy storage on the network or something like that? And be rewarded for verifying shit?

Could you use other coins as well? And if so, wouldn't that deincentivize contributing to the Sia network?

Sorry I'm a total noob when it comes to these specialized blockchains.

20 months ago

hairygrape

Its called cryptocurrency, so if a currency isnt used for goods or services its a shitcoin in my book. As far as siacoin being a service via a coin works I cant tell you how thatll work in the long haul.

20 months ago

RumChicken

Yes. It's like if you worked at dunkin donuts and they paid you in dunkin donuts gift certificates. Is that money? No, but it can be used to buy dunkin donuts shit. In the fiat world, that gift card would be worth less than its dollar value since it's locked into being used at DD, but in the crypto world, the value of what can be 'bought' (in the case of SIA, distributed, encrypted storage), floats so 100 SIA may buy you 1TB for a month, then next year, maybe it'll buy you 100TB, or 5GB. It's value, but it's also speculated.

20 months ago

CouchChiller

Siacoin is needed for several reasons

It is the currency used to pay for storage on the network. Why is this the case? Because the coin secures the blockchain, it is mined by miners and hosts. The coin has value proportionate to the number of people using the Sia storage network. The coin is staked by hosts so they don't fuck over the users.

On mobile, so that's the short answer.

20 months ago

SniperWish

Okay well lets assume Sia becomes a completely unhackable and cheaper alternative to Google, Amazon and Apple's cloud storage system

If one of those companies bought out Sia, what do you think the Siacoin holders would get?

A shitload of bags, a buyout, or would Siacoin just stay as a tradable coin?

20 months ago

Lord_Tryzalot

How would a 'company' buy a distributed network of storage? There's no central authority to negotiate with and the code can only be modified through consensus. Jesus does nobody read? blog.sia.tech/the-sia-ethos-48f72f1cf382

The whole allure of the crypto movement for many is the escape from centralized control. You no longer have to give all of your 'metadata' to google, and microsoft, and apple, and facebook. If you want to bank, you no longer have to work with jp morgan chase, citibank, deutche bank. As the space evolves, centralized control will become more and more of a myth and traditional industries will be massively disrupted. It might not be any extant project, but when blockchain matures, it's going to fuck up a lot of jobs - including a lot of the current tech jobs.

20 months ago

cum2soon

lolBuy our what? What part of ''sia is decentralized, even from the devs themselves'' do you not get?What would Google or Amazon buy to stop sia?

20 months ago

New_Cliche

good thread, op. your siacoin question seems to have been answered. what next? Ethereum?

What value does ethereum bring to the marketplace? decentralized applications? what does that even mean? do we have examples? is eth a huge scam?

20 months ago

Harmless_Venom

They would buy the market share and revenue streams coming into Sia as well as the brand

From what I understand it's a more versatile form of Bitcoin which not only can be converted into "gas" to power smartcontracts but it provides a super-fast network for companies to build block chains around (such as file management contracts, essentially renting a part of the blockchain)

But I'm half talking out of my ass, does anyone care to correct me?

20 months ago

Snarelure

converted into "gas" to power smartcontractwhat does that mean? shouldn't smartcontracts be demand driven?

20 months ago

StonedTime

use clover you fuck

20 months ago

TechHater

They would buy the market share and revenue streams coming into Sia as well as the brand

Newfag here. How would this even be possible? Its not stock. There are no shares. Unless they mined most of the blocks and hodl whaled out anyone else thinking about buying in, which could be circumvented with a consensus fork of 99.9999999999% anyways, they couldn't control anything since they're just one entity. Real world physics don't work the same as Matrix blockchain physics.

20 months ago

idontknow

We're here for intellectual discussion no need to throw names out there.

So you're telling me Amazon S3, losing money, can't go in and buy out sia owners for 500 million. Then either shut down the network, and/or collect the revenues that Sia was making based on contracts with corporations (Which is their entire fucking revenue model)

20 months ago

LuckyDusty

Can newfags go away.....stocksspeculatingUgh....

20 months ago

DeathDog

buy the market shareThere is no market share. There are siafunds which allow the devs to collect ~3% of the contracts on the network. That's it.There's nothing more to buy.

It is impossible. That's why it's asked in a 'what if' without actually giving a possible way for sia to be bought. They can't buy all the coins because it would cost a fortune, and even if they did, new coins are mined, so no one owns a large percentage of anything.

Buy out what? And no, the sia owners can refuse if they make money. They want to become the Facebook of Storage and own a Yacht.There is nothing to buy out. The sia devs cannot even shut down the network. It's decentralized completely.

20 months ago

Poker_Star

Sia is worth money because eventually they will offer a cheaper, decentralized (less likely to fail), and better version of cloud storage (AWS, iCloud, Dropbox) to enterprise companies. The companies will need to pay the network members (miners) or those who bought coins to store their data. So real cash will flow into the network, rewarding early adopters.

Tons of enterprise companies (shipping, logistics, financial, peer to peer), as well as large organizations, even governments will use the etherium network to transact. Buying and transferring ETH will be part of the cost of doing business on the network, and the price will go up. I think in the far future Ethereum, or something like it, will BE the economy. Imagine a network of pre-agreed upon smart contracts that just interact with each other and transfer ETH between each other autonomously.

You want to buy something from a vending machine. You transmit ETH to it, it gives you the product. The smart contract sends an order to the supplier. The supplier comes and refills the machine. Once the product is scanned in, the ETH is released to the suppliers account.

20 months ago

Harmless_Venom

This is pretty much the end game, however companies could just make and run their own ETH network and say fuck you to miners.

20 months ago

Emberburn

1. If they create their own token, they would probably just use the Ethereum network anyway because it's way easier

2. If they built their own network, their would be no interoperability between networks, so the machine owner couldn't pay the supplier without converting to an intermediary, which is wasteful. They could use something like ARK is developing, which is a smart bridge that is an intermediary contract between the two blockchains.

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